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DTP-2012
Handover and Final Account - Stage 5
1st Edition, March 2012
1. GENERAL ........................................................................................................................................................................... 2
1.1 APPLICATION ................................................................................................................................................................ 2
1.2 MANAGEMENT/CO-ORDINATION OF STAGE................................................................................................................... 2
1.3 DOES COST CONTROL PROCEDURES ............................................................................................................................. 2
1.4 OBJECTIVES................................................................................................................................................................... 2
2. SAFETY FILE ..................................................................................................................................................................... 2
2.1 THE SAFETY FILE AND SUBSTANTIAL COMPLETION...................................................................................................... 2
2.2 DUTIES OF THE PROJECT SUPERVISOR DESIGN PROCESS (PSDP) .................................................................................. 2
3. COMPLETION AND HANDOVER ................................................................................................................................. 3
3.1 SUBSTANTIAL COMPLETION .......................................................................................................................................... 3
3.2 HANDOVER ................................................................................................................................................................... 4
3.3 LIQUIDATED DAMAGES ................................................................................................................................................. 4
3.4 ANTICIPATED FINAL ACCOUNT ..................................................................................................................................... 4
4. PENULTIMATE CERTIFICATE (FINAL ACCOUNT) ............................................................................................... 5
4.1 APPARENT DEFECTS ...................................................................................................................................................... 5
4.2 FINAL STATEMENT ........................................................................................................................................................ 5
4.3 FINAL ACCOUNT ........................................................................................................................................................... 5
4.4 PENULTIMATE CERTIFICATE.......................................................................................................................................... 6
4.5 FINAL ACCOUNT REPORT .............................................................................................................................................. 6
5. DEFECTS PERIOD ............................................................................................................................................................ 6
5.1 DEFECTS ....................................................................................................................................................................... 6
5.2 DEFECTS CERTIFICATE .................................................................................................................................................. 7
5.3 FINAL ACCOUNT REPORT (SUPPLEMENT) ...................................................................................................................... 7
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DTP-2012 Final Account - Stage 5 1 Edition March 2012
1. General
1.1 Application
This Practice Note sets out the communication and reporting requirements for substantial completion,
handover of school projects and Final Account. It forms part of the Design Team Procedures [4th Edition
2012] and these requirements must be complied with. It also gives guidance on contractual issues and
requirements.
The Design Team Procedures [4th Edition 2012] and any associated Practice Notes (published at
www.education.ie) apply to all schools construction projects funded in part or in total by the Department of
Education & Skills unless otherwise stated.
1.4 Objectives
The Design Team objectives for Stage 5 - Handover and Final Account are to:
to achieve a satisfactory standard of construction and the Substantial Completion of all elements of
the Project prior to issuing the Certificate of Substantial Completion
to prepare and agree the Final Account in accordance with the Contract conditions and the
requirements of this document (see Final Account below)
to administer the Defects Liability Period to ensure all defects are remedied and issue a Defects
Certificate on expiry of that period
2. Safety File
2.1 The Safety File and Substantial Completion
The ER should check with the PSDP before issuing the Substantial Completion Certificate. All substantive
elements (sufficient to allow safe occupation of the building) of the Safety File should be complete before
Substantial Completion, and any supplementary information in place within three months of that date.
It is up to the Contractor to tell the ER that the works are ready for Substantial Completion and request that
the ER so certifies (Clause 9.6.2) and not the other way round.
Within 20 working days after receiving the Contractors request to certify Substantial Completion of
the Works, the Employers Representative shall give to the Contractor and the Employer:
a certificate stating the date that Substantial Completion occurred or
the reasons for not issuing the certificate.
If, in the judgement of the ER, the works are not ready for Substantial Completion, the ER must state the
reasons. These reasons must be based solely on the Contract i.e. Clause 9.6.2, and may be the subject of
conciliation/arbitration particularly if a refusal results in Liquidated Damages becoming due.
The first test is are the Works or the part of the Works complete so that they can be taken over and
used by the Employer for their intended purpose? A pragmatic approach is required here.
Minor Defects which do not prevent the Works being used for their intended purpose, and will not
prejudice the safe and convenient use of the Works should not be used as grounds on which to refuse
Substantial Completion.
However, defects which present a real Health and Safety risk or are self-evidently inconvenient (e.g.
no glass in the windows!) are valid reasons to refuse Substantial Completion
Tests that are required by the Contract and Contractors Documents required (e.g. Safety File,
Guarantees, certificates etc) must be specified in the Works Requirements as being required prior to
Substantial Completion. Otherwise it is more difficult to justify refusal to certify Substantial Completion
without them!
For Department projects, Collateral warranties are not normally applicable (see DTP-2012
Preparation of Tender Documents).
DTP-2012 Preparation of Tender Documents also advises the Design Team to enter The Employers
Representative is required to issue the certificate of Substantial Completion if the Works or a Section
reaches Substantial Completion before its Date for Substantial Completion in the Schedule Part 1H.
If the Schedule, part 1H, so states, then the ER cannot refuse to certify on the basis of early completion.
The Substantial Completion certificate may include a list of Defects and any outstanding work [but nothing
in the certificate, including the failure to list any Defect, relieves the Contractor of any obligations].
It is the responsibility of the Design Team to ensure that all snags have been identified, agreed with the
Client and listed for the contractors attention. (They have 20 days to do so see Clause 9.6.2)
If the ER has refused to issue a certificate of Substantial Completion (as above) the ER must give a copy
setting out the reasons to both the Client, and through the client to the Department. This should be
accompanied by a brief summary of the implications of such a refusal, the likely delay to Completion and
whether Liquidated Damages will be applicable.
3.2 Handover
Prior to hand over of the building the Design Team must explain the building and how it operates to the
Client and the occupiers (i.e. the School) so that maximum benefit can be gained from the facilities
provided.
They must clearly (and in detail) explain how to operate and maintain the building and its engineering
services systems at optimum efficiency with particular emphasis on safety and energy conservation.
At the same time as the issue of the Certificate of Substantial Completion, the ER and Design Team
should:
issue copies of all certificates of standards, guarantees and commissioning certificates allowed for in
the Contract Documents (e.g. Agrement Certificates, Roofing material and installation guarantees,
etc.) to both the Client and to the School
o As stated above Tests that are required by the Contract and Contractors Documents required (e.g.
Safety File, Guarantees, certificates etc) should normally be specified in the Works Requirements as
being required prior to Substantial Completion
o Where the Works Requirements provided for a later delivery date for some guarantees and
certificates, the ER must list those guarantees and certificates, the anticipated delivery date, and
provide a note explaining why a later delivery date was called for
In conjunction with the Project Supervisor for the Design Process must provide comprehensive sets of
the latest issue of construction drawings and specifications (architectural, structural and services
drawings) to the Client and the Occupier.
o In addition copies must also be provided on CD-Rom in an acceptable file transfer format. These
construction drawings and specifications may be included as part of the Safety File where
appropriate.
Issue to both the Client and the Occupier (the School) the completed Safety File
Likewise at the same time as the issue of the Certificate of Substantial Completion to the Client, the
Architect must issue to the Client
an Architects Opinion on Compliance of the Works with Planning and Development Acts and with the
Building Regulations
The Design Team is reminded that the Contractor must give notice of claims within 20 working days with all
relevant facts provided within a further 20 working days, and that the Employers Representative in turn
must process any such claims within the permitted time limits. There should consequently be no
outstanding claims in excess of 3 months duration and any unresolved Contractors Claims should have
been recorded both on the Progress Report and in the anticipated Final Account Summary
Under no circumstances should the Employers Representative agree to a Final Account or element of the
Final Account (including Contractors Claims in excess of the Employers Representatives authority) outside
the limits above without prior Client and Department approval.
If however the adjusted Contract sum is greater than the above (Department) authorised sum, and the
Client wishes to seek Department funding for the additional costs (or part thereof) the Client and the
Design Team must (after the Client has examined this report and has accepted the content in writing)
immediately:
Forward the Draft Final Account to the Department (with the Design Teams explanation) for
consideration
o Include all costs (outside the ERs authority) for which a request for authorisation has not yet been
submitted including costs arising from contractor claims
Contact the Department to arrange a meeting to discuss funding for these additional costs
o Where agreement on funding is reached the Final Account can be agreed and the Penultimate
Certificate issued as above. Where agreement is not reached it falls to the School Authority to fund
those additional costs
Where there is no reasonable basis for additional costs and the Department has declined to provide
funding, those costs must be paid for by the School Authority out of their own resources.
Where these costs arose due to negligence or the failure of the Design Team or a member of the Design
Team to exercise reasonable skill and care, the School Authority may seek recompense from the Design
Team or their Professional Indemnity Insurance
It is a matter for the School Authority and the Design Team (not the Department) to ensure that the
Final Account is resolved in accordance with the Contract within 3 month of receipt of the Final
Statement, and that funding is in place to issue the Penultimate Certificate.
5. Defects Period
5.1 Defects
In consultation with the Client and the School, the ER will have prepared a comprehensive list of all defects
prior to the receipt of the Final Statement. The ER must seek (through the Contract) to ensure that all these
defects are remedied promptly.
If the final payment certificate states that there is a sum owing to the Contractor, the Contractor must issue
an invoice to the Employer for that sum and the Employer must pay the amount due on the invoice within
15 working days after receiving the invoice. If the penultimate or final payment certificate states that there is
a sum owing to the Employer, the Contractor must pay the amount due within 10 working days of receipt of
the Employers demand for payment.